Wildhorse Company sells televisions at an average price of $856 and also offers to each...
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Accounting
Wildhorse Company sells televisions at an average price of $ and also offers to each customer a separate year warranty contract for $ that requires the company to perform periodic services and to replace defective parts. During the company sold televisions and warranty contracts for cash. It estimates the year warranty costs as $ for parts and $ for labor, and accounts for warranties separately. Assume sales occurred on December and straightline recognition of warranty revenues occurs.
a
Your answer is partially correct.
Record any necessary journal entries in If no entry is required, select No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually, List all debit entries before credit entries.
Account Titles and Explanation
Debit
Unearned Warranty Revenue
Accounts Receivable
Accounts Receivable
Answer & Explanation
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